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PMP Definitions

Terms in this set (25)

Rule of 7
7 consecutive data points within the control limits but on either side of the mean
Rough Order of Magnitude (ROM) Estimate
within the range of -25% to +75%
Preliminary estimate
within the range of -15% to +50%
Budget estimate
within the range of -10% to +25%
Definitive Estimate
within the range of -5% to +10%
Final estimate
100% accurate
Run Chart
plotting the value of a variable over time to analyze the trend of a process
Control Chart
basically a Run Chart by adding a mean, two specification limits (Upper Specification Limit USL and Lower Specification Limit LSL) and two control limits (Upper Control Limit UCL and Lower Control Limit LCL) to analyze whether the process is under control
Analogous Estimating
the estimation is made by making an analogy with similar project from the past; however, the accuracy is quite low
Parametric Estimating
the estimation is based on adjusting "parameters" from historical information; the estimation is more reliable
Bottom-up Estimating
(also known as the "definitive technique") the most accurate and time-consuming of all estimation methods in which every single activity is broken down into details at the bottom level and aggregate the estimations of each individual components to give an overall estimation
Three points Estimating
this more accurate estimation is developed from three estimates using the PERT (Program Evaluation And Review Technique) formula: (Eo + 4Em + Ep)/6
PERT = (Eo + 4Em + Ep)/6
Most Likely Estimate (Em), Pessimistic Estimate (Ep), Optimistic Estimate (Eo)
Avoid
to completely eliminate the likelihood / impact of the risks
Mitigate
to reduce the impacts / the likelihood of occurrence of the risks
Transfer
the negative impacts related to the occurrence of the risk are shifted to a 3rd party, the 3rd party will absorb all the losses, may be arranged in the form of insurance policy or penalty clause, usually involve contractual arrangements and considerations
Accept
the negative risks are to be accepted passively, no active actions / measures are carried out to reduce the likelihood of occurrence / degree of negative impact, workarounds may be carried out as a response once the risks occur
Escalate
escalate the project risk to the appropriate party to handle it, no longer a responsibility of the project manager, can be deleted from the risk register or leave it there with a remark
Enhance
increase the % of occurrence of the opportunity or to increase the benefits from the realization of the opportunities
Exploit
make the occurrence (of opportunity) 100%
Contingency Plan
he pre-developed risk response strategies to be taken if the actively accepted risks occur
Fallback Plan
the pre-developed risk response strategies to be taken if the primary risk response is not effective
Workaround
the immediate risk response strategies for unidentified or passively accepted risks occur in order to contain the damages against the project plan (the costs dealing with identified risks can be obtained from the management reserve upon management approval)
Nominal Group Technique
brainstorming + group ranking / prioritization
Brainstorming
generating as many ideas as possible in a safe environment without any judgment from others
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